As of the July, 2022, release via CMS

LUTHERAN HOSPITAL

CMS id: 360087
1730 W. 25TH STREET, CLEVELAND OH 44113. County: CUYAHOGA
System: CLEVELAND CLINIC
CBSA: Cleveland-Elyria, OH

The 201-bed, acute-care hospital had $8,605,730 in net service to patients*, with a total profit margin of 13.87890% in fiscal year 2021, the latest year available.
It spent 3.20% of its operating expenses on uncompensated care and reported $5,985,291 in Medicaid shortfall.

* For more about Net Service to Patients and operating revenue, please the finance section below.

Note: Medians are from acute-care hospitals with "complete" fiscal years. For more about how we calculated medians and cost reports in general, please click here.

Details

	2017	2018	2019	2020	2021
# of days in fyear	365	365	365	366	365
Ownership	nfp	nfp	nfp	nfp	nfp
Acute beds Median	109 118	109 118	109 119.5	109 118	109 119
Total beds Median	201 162	201 162	201 162	201 162	201 163.5
FTEs Median	683.10 788.06	691.20 793.42	693.10 806.03	695.00 787.61	656.49 804.34

Finances As they appear in worksheet G3 of the cost reports.

Note: Net Patient Revenue is considered operating revenue, which means Net Service to Patients is considered operating profit. Click here for more about cost report financials

Hospital cost reports are an enormously complicated dataset. There are whole organizations and an offical CMS vendor dedicated to helping researchers work with the data.
It's important to understand that hospital financials in cost reports are not organized in the same as other sources such as annual financial reports to bond holders.

The biggest difference is the concept of operating revenue and profit. Net Service to patients (NS2P), which is the sum of net patient revenue minus operating expenses, is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

That would make Net Patient Revenue = operating revenue.

All this makes things challenging when comparing what's reported in cost reports to other sources. It becomes clearer when you consider that, beyond the purpose of reimbursement, cost reports are a tool for policymakers trying to understand the financial situation of a hospital doing the tasks specific to hospitals.

In other words, while a facility with a division that formulates drugs might include earnings from that as operating revenue in their corporate annual result, this is not central to the operations of a hospital caring for patients and so it is counted as "other income." (See below the financials section for more on "other income")

The healthcare consulting firm HMP, in a former partnership with Modern Healthcare, did develop a formula for estimating operating revenue closer to what one might find in other sources. We no longer use this for the following reasons:

The measure was not widely used beyond HMP and Modern Healthcare. Many hospitals had their own internal estimates of operating revenue and profit.
Because of this, there was confusion when reporting operating results for individual hospitals. There was often pushback when a facility's internal numbers did not match what Modern Healthcare was reporting.
The formula includes revenue from portions of the "other income" section, which may also include non-operating revenue. HMP themselves point out in a caveat on their site that they cannot exclude all non-operating revenue from their measure.

HMP's operating measure has proven problematic in the past for our reporting and the partnership with them ended years ago. It's best to not use a measure that we alone cannot defend.

	2017	2018	2019	2020	2021
Net patient revenue ? Median	108,619,638 150,932,746	110,408,769 158,950,878	110,792,220 168,696,998	106,609,464 163,454,693	133,567,438 186,589,412
Operating expenses Median	109,564,921 149,311,209	114,878,716 156,110,414	113,622,740 164,890,568	116,515,824 166,516,854	124,961,708 180,120,888
Net income from service 2 patients (NS2P) ? Median	-945,283 -964,173	-4,469,947 -643,601.5	-2,830,520 -116,254	-9,906,360 -5,025,862	8,605,730 -1,284,564
NS2P margin ? Median	-0.87% -0.62	-4.05% -0.29	-2.55% 0.18	-9.29% -5.07	6.44% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for LUTHERAN HOSPITAL compared to all** acute-care hospitals, from CMS cost reports.
Note: NS2P is considered operating margin by MACPAC. The chart below is interactive: click or touch to see more.

* Data range does not show outliers, which fall beyond the minimum and maximum of the range.
** From cost reports with complete fiscal years. Number of acute-care hospitals available to calculate medians:

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

	2017	2018	2019	2020	2021
Other income* Median Click here to show/hide details	10,504,314 5,089,215	5,233,650 4,572,541	8,986,130 5,268,134	17,762,248 13,092,619	11,532,559 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	64,079 224,999	1,807,181 199,009	190,839 206,870.5	127,293 194,343	73,424 249,496
⊳ Line 7: Investments ? ⊳ Median	432,749 299,524	546,216 188,688.5	596,429 370,813	517,169 309,361.5	627,741 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	2,078	1,043	1,859	1,226	1,757
⊳ Line 11: Rebates and refunds of expenses	0	0	0	0	0
⊳ Line 12: Parking lot receipts	26,324	37,386	34,314	17,256	18,242
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	0	0	0	-174	0
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	0	0	0
⊳ Line 17: Revenue from sale of drugs to other than patients	2,026,826	1,802,334	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	990	1,061	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	888,572	884,872	886,854	910,095	804,674
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	0 1,597,664
⊳ Sum Line 24	7,063,686	153,628	7,274,774	16,189,383	10,006,721
Total income ? Median	9,559,031 6,586,430	763,703 6,767,106	6,155,610 8,419,950	7,855,888 8,094,175	20,138,289 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	9,559,031 6,043,842	763,703 5,845,112	6,155,610 7,606,259	7,855,888 7,283,041	20,138,289 14,957,241
Net margin Median	8.02444% 4.62%	0.66040% 4.42%	5.13917% 5.16%	6.31646% 5.2%	13.87890% 9.25%

* About "Other income": Other income, or line 25 in worksheet G3, is the sum of lines 6 through 24. It includes three lines that are considered non-operating revenue - contributions, investments and government appropriations. Medians are included for these three lines. It also contains items that are not central to providing healthcare, such as revenue from parking or gift shops.
"Sum Line 24" is a special case. Called "Other (specify)" in the cost reports, CMS allows for this line to be "subscripted," or divided into sublines like 002400, 002401, 002402. And hospitals do that, up to 100 lines, to detail income (and sometimes negative returns) that are otherwise not covered in the previous "other" lines. Therefore, "Sum Line 24" is the sum of all the lines 24.

Range* of total profit (loss) margins

= Total margin for LUTHERAN HOSPITAL compared to all** acute-care hospitals, from CMS cost reports.
The chart below is interactive: click or touch to see more.

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

Medicare revenue

Inpatient and outpatient revenue

	2017	2018	2019	2020	2021
All inpatient revenue Median Click here to show/hide details	16,303,281 23,241,334	16,299,663 23,709,545	15,151,404 24,248,380	11,954,653 22,858,541	11,290,265 23,620,613
"All inpatient revenue" is made up of any Medicare payments for routine inpatient, swingbed SNFs, TEFRA, IPF, IRF, inpatient long-term care, CAH and inpatient SNF facilities. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine inpatient revenue ⊳ Median	11,753,724 21,577,146	12,282,563 22,041,594	12,036,100 22,722,063	8,470,288 21,570,441	8,348,569 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Inpatient psychiatric facility (IPF) ⊳ Median	4,549,557 1,845,420	4,017,100 1,757,392	3,115,304 1,738,842	3,484,365 1,510,463	2,941,696 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	0 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Critical-access hospitals ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Skilled-nursing facilities (SNF) ⊳ Median	0 1,203,033	0 1,215,295	0 1,313,657	0 1,365,298	0 1,179,746
All outpatient revenue Median Click here to show/hide details	3,710,739 11,160,864	4,895,609 11,987,345	5,340,943 12,926,866	7,878,929 11,884,480	9,330,290 13,145,163
"All outpatient revenue" is made up of any payments for routine outpatient, HHA, CMHC, rural health and other federally-qualified health clinics. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine outpatient revenue ⊳ Median	3,710,739 10,918,923	4,895,609 11,706,976	5,340,943 12,615,917	7,878,929 11,458,116	9,330,290 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	0 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Rural health clinics ⊳ Median	0 618,038	0 697,279	0 690,232	0 684,010	0 670,558
⊳ Other federally qualified health clinics ⊳ Median	0 --	0 --	0 --	0 --	0 --

Other payments

Item	2017	2018	2019	2020	2021
Graduate Medical Education (GME) Median	451,505 3,284,314	458,235 3,250,551	636,584 3,386,837	740,628 3,360,806	651,534 3,508,953
Disproportionate-share hospital (DSH) Median	764,066 594,888	730,142 595,761	666,058 577,894	498,250 542,168	474,977 549,667
Outlier Median	26,998 582,572	19,272 538,116	84,964 212,434	94,067 126,559	129,028 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	7,379,021 3,662,910	9,823,879 3,730,911	11,773,425 4,081,319	13,044,788 4,643,908	5,985,291 4,389,147
Charity care Median	2,252,623 2,654,636	2,835,852 2,940,659	4,460,064 3,380,215	3,365,569 3,488,738	3,123,822 3,233,405
Uncompensated care (UCC) Median	3,501,720 5,147,790	4,272,831 5,337,617	5,464,827 5,711,082	4,454,769 5,923,418	4,004,288 5,508,107
UCC as a % of operating expenses Median	3.20% 3.24	3.72% 3.12	4.81% 3.21	3.82% 3.3	3.20% 2.86
Total shortfall/UCC Median	10,880,741 9,489,989	14,096,710 9,424,297	17,238,252 10,120,158	17,499,557 11,171,337	9,989,579 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	41,440,566 52,142,039	42,877,398 54,485,252	43,545,968 57,395,589	44,169,397 58,830,919	45,292,255 61,722,907
Salaries as a % of operating expenses Median	37.82 36.68	37.32 36.56	38.33 36.37	37.91 35.93	36.18 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	0 2,937,156	0 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	0 1,469,317
Contract adjusted salaries, direct-care Median	14,943 1,449,244	13,893 1,475,986	18,061 1,563,078	10,289 1,721,954	698,423 2,991,828
Contract hours, direct-care Median	268.00 22,725	251.00 23,018.5	351.00 24,503.48	188.00 25,026.5	10,808.58 33,786
Contract wages, direct-care Median	55.76 64.67	55.35 64.53	51.46 65.06	54.73 68.97	64.62 88.94

* in an approved program

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Cost reports are self-reported by the facility, are subject to revision and should be considered preliminary.

* Net Service to patients (NS2P) equals net patient revenue minus operating expenses. NS2P is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

About medians

Medians are calculated from reports with "complete" fiscal years, or reports with fiscal years of at least 300 days and no more than 420 days.

In cases where there are fewer than 50 values reported, medians are not calculated. For childrens' hospitals, it's when fewer than 20 are reported.

Web app by Tim Broderick | email.